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The Mexican telecommunications regulator carried out a public consultation on the value of the parameters to be used to identify the geographical zones in which wholesale tariff deregulation can be implemented. In principle, the telecom regulator proposed the identification of the geographical zones to be liberalized based on four criteria: market shares of the dominant player and competitors; number of operators and the degree of penetration of fixed broadband.
The analysis carried out by Oxford Competition Economics concluded that the number of geographic areas subject to tariff deregulation can be different from the one proposed by the regulator depending on whether the methodological approach adopted was either stochastic or deterministic. We implemented the statistical methodology of “propensity score” to support this argument and to provide the relevant results accordingly.